Pharma Stocks Outlook
May extend losses next week on fresh tariff threat
This story was originally published at 20:37 IST on 4 April 2025
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MUMBAI – Shares of pharmaceutical companies are expected to extend their losses next week after US President Donald Trump threatened to impose tariffs on pharmaceutical products. Trump, however, did not give a timeline on when the levies will be announced, which has led to some uncertainty.
Tariffs on pharmaceuticals are "going to start coming in... at a level that we haven't really seen before", Trump told reporters on Thursday. "We are looking at pharma right now. Pharmaceuticals. It's a separate category. We'll be announcing that sometime in the near future. It's under review right now," he said.
The comments triggered a sharp sell-off in pharmaceutical stocks across global markets on Friday. Back home, shares of Granules India and Laurus Labs closed down around 7% each, while those of Gland Pharma, Lupin, Aurobindo Pharma, and Ipca Laboratories ended 5-7% lower. Among Nifty 50 constituents, shares of Sun Pharmaceutical Industries, Dr. Reddy's Laboratories, and Cipla fell 3-5%. Losses in these stocks dragged the Nifty Pharma index down 4% to a near-one-month low of 20560 points.
The sell-off comes just a day after a relief rally in pharma stocks Thursday as the Trump administration had left out the sector from reciprocal tariffs announced on Thursday. The exemption raised hopes that business could carry on as usual for Indian pharma companies, which have significant exposure to the US. "Those companies which the market believed would be less hurt by likely tariffs are Cipla, Sun Pharma, Divi's Laboratories, Torrent Pharmaceuticals, and Biocon," Nuvama Institutional Equities said in a report.
Trump announced a 10% tariff on imports from almost all trading partners along with additional reciprocal levies that vary from country to country. Trump's stiffer-than-expected tariff plan is expected to trigger strong retaliatory measures, leading to a potential trade war.
The sector is not expected to have any immediate impact as it is currently exempted from the US' reciprocal tariffs, ICICI Securities said in a report. India's total pharma exports to the US were at $12.8 billion in 2024. Even if tariffs are imposed, the sector should be well-positioned to pass its effect on significantly due to its inherent competitive strengths, CARE Ratings said in a report.
TOP HEADLINES
* Emcure Pharma arm to buy Manx Health's pdt portfolio for 19.7 mln sterling
* US FDA tags Alivus Life's Gujarat facility as 'voluntary action indicated'
* Sai Life Sciences sets up Peptide research centre at Hyderabad campus
* US FDA approves Gland Pharma's Acetaminophen injection
* Lupin arm acquires UK-based Renascience Pharma for 12.3 mln pound sterling
* JB Chem to acquire 7 mln shares of Jamnagar Renewables One for INR 70 mln
* HC orders cancelling Kindpan trademark given to co on plea by Mankind Pharma
* Caplin Point's Hong Kong subsidiary acquires Neoethicals Chile
* Alivus Life Sciences to buy 9.21% stake in Torrent Urja 19 for INR 156 mln
* Piramal Pharma starts production of Sevoflurane at Telangana unit
* Peter Bains resigns as Biocon group CEO to take on role in arm Syngene Intl
* Biocon board to Friday mull raising funds via commercial papers, other modes
* IPO Alert: Anlon Healthcare withdraws DRHP for fresh issue of 14 mln shares
* Dabur India gets INR-1.1-billion tax demand from income tax department
* Emcure Pharma arm in pact with Italy's WiQo for derma-cosmetic treatments
* Alembic Pharma gets US FDA final nod for pantoprazole sodium for injection
* Eris Life gives INR 1-billion corporate guarantee for subsidiary's loan
* Glenmark Pharma US arm launches Vancomycin Hydrochloride for injections
* Bengaluru tax body increases Syngene Intl's tax demand to INR 1.65 bln
* Mankind Pharma completes merger with Shree Jee Labs, JPR Labs, Jaspack Ind
* Glenmark Pharma arm to cease operations at Switzerland facility
* Zydus Life's plan of buying Sterling Biotech's API business delayed again
* Income Tax Department seeks INR 1.8 bln additional tax from Mankind Pharma
* Laurus Labs to acquire 26% stake in Kurnool Renewables for INR 350 mln
Following are the resistance and support levels for the stocks for next week as per calculations by Informist based on their prices on the National Stock Exchange:
| Company | Price | Week-on-Week Change in % | Resistance | Support |
| Abbott India | 29077.40 | (-)5.40 | 30593.80 | 28071.00 |
| Alkem Laboratories | 4828.70 | (-)1.10 | 5022.90 | 4641.50 |
| Aurobindo Pharma | 1105.35 | (-)4.80 | 1241.00 | 982.30 |
| Biocon | 327.80 | (-)4.10 | 352.70 | 308.90 |
| Cipla | 1415.25 | (-)1.90 | 1539.30 | 1328.00 |
| Divi's Laboratories | 5482.85 | (-)5.10 | 5921.20 | 5165.80 |
| Dr Reddy's Laboratories | 1109.95 | (-)3.00 | 1195.80 | 1033.30 |
| Gland Pharma | 1474.85 | (-)7.40 | 1609.60 | 1395.60 |
| GlaxoSmithKline Pharmaceuticals | 2739.25 | (-)4.90 | 2938.00 | 2605.30 |
| Glenmark Pharmaceuticals | 1499.85 | (-)2.70 | 1581.00 | 1428.50 |
| Granules India | 456.75 | (-)6.10 | 508.40 | 428.20 |
| Ipca Laboratories | 1399.25 | (-)6.80 | 1549.80 | 1283.30 |
| Laurus Labs | 574.45 | (-)6.40 | 646.20 | 525.60 |
| Lupin | 1971.05 | (-)2.80 | 2166.30 | 1818.40 |
| Natco Pharma | 796.75 | (-)0.30 | 864.60 | 753.40 |
| Pfizer | 4017.30 | 0.30 | 4128.90 | 3899.20 |
| Sanofi India | 6006.25 | 4.90 | 6153.90 | 5867.20 |
| Sun Pharmaceutical Industries | 1709.35 | (-)1.50 | 1836.20 | 1594.60 |
| Torrent Pharmaceuticals | 3286.50 | 1.80 | 3388.40 | 3129.10 |
| Zydus Lifesciences | 866.90 | (-)2.20 | 940.60 | 797.70 |
| Nifty Pharma | 20560.00 | (-)2.70 | 22035.30 | 19351.80 |
| Nifty 50 | 22904.45 | (-)2.60 | 23349.50 | 22635.00 |
| S&P BSE Sensex | 75364.69 | (-)2.70 | 76638.70 | 74603.60 |
End
US$1 = INR 85.23
Reported by Alina Geogy
Edited by Saji George Titus
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